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Introduction to Six Sigma Purpose of Six Sigma  -  To make Customer Happier and Increase Profits
Origin of Six Sigma ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Time Line 1985 1987 1992 1995 2002 Allied Signal Johnson & Johnson, Ford, Nissan, Honeywell Dr Mikel J Harry wrote a paper relating early failures to Quality. MOTOROLA General Electric
Question  : Which company pioneered the concept of six sigma? GE Bombay Dabbawallas ASQ Motorola
Question  : Which company pioneered the concept of six sigma? GE Bombay Dabbawallas ASQ Motorola
Pilot's Six Sigma Performance Width of Landing Strip 1/2 Width of Landing strip If pilot always lands within 1/2 the landing strip width, we say that he has Six Sigma capacity.
Pilot's Six Sigma Performance This is a very crude way of telling that when you perform in half the margin allowed to you, you may call it six sigma performance.
Question: You have to park your car where side margins are 6 inches on both sides, if your car is perfectly parked in center. What is your performance level when you find out that all the times you are able to park your car within 3 inches from the center and at any time the side margin is not less than 3 inches? Twelve sigma Six Sigma  Zero Sigma Three sigma
Question: You have to park your car where side margins are 6 inches on both sides, if your car is perfectly parked in center. What is your performance level when you find out that all the times you are able to park your car within 3 inches from the center and at any time the side margin is not less than 3 inches? Twelve sigma Six Sigma  Zero Sigma Three sigma
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Current Leadership Challenges Six sigma will be able to help in dealing with all these challenges to a certain extent.
Question: How six sigma helps in retaining people? Because two times 3 σ is 6 σ Three sigma does not motivate. Sigma reduces stress level. By empowering them to solve their problems.
Question: How six sigma helps in retaining people? Because two times 3 σ is 6 σ Three sigma does not motivate. Sigma reduces stress level. By empowering them to solve their problems.
Six Sigma Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Question: What is the key purpose of six sigma? Do not bother about profits, just make customer happy at any cost. To make customer happy To increase profits (50% marks) To make customer happy and increase profits
Question: What is the key purpose of six sigma? Do not bother about profits, just make customer happy at any cost. To make customer happy To increase profits (50% marks) To make customer happy and increase profits
What can Six Sigma do ?
GE Six Sigma Economics (in millions) Source: 1998 GE Annual Report, Jack Welch Letter to Share Owner and Employees - progress based upon total corporation cost/ benefits attributable to Six Sigma.
Overview of Six Sigma CHANGE THE WORLD TRANSFORM THE ORGANIZATION GROWTH COSTS OUT PAIN, URGENCY, SURVIVAL Six Sigma a PHILOSOPHY Six Sigma as a Process Six Sigma as a Statistical Tool.
It's a Philosophy ,[object Object],[object Object],[object Object]
It's a Process ,[object Object]
It's Statistics ,[object Object]
Management Involvement ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Question: How many defects per million opportunities make six sigma? 3.4  0.34 3400 34
Question: How many defects per million opportunities make six sigma? 3.4  0.34 3400 34 This is with long term shift of 1.5 sigma
Key issues for Leadership ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Philosophy of six sigma ,[object Object],[object Object],[object Object],[object Object]
Critical Elements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Data Driven Decision Y   =  f(x) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Focus of Six Sigma is to Identify and Control X's
Two Processes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Question: In the representation Y=f(X), which of these is X Headache Viral Infection Fever Cough
Question: In the representation Y=f(X), which of these is X Headache Viral Infection Fever Cough True, that is the cause of the problem.
Some Basic Concepts
COPQ - Cost of Poor Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],AVERAGE COPQ approximately 15% of Sales
COPQ v/s Sigma Level
Question: Which of the followings is "not" the Cost of poor quality? Cost of raw material  Cost of lost customer Cost of inspections Cost of repair
Question: Which of the followings is "not" the Cost of poor quality? Cost of raw material  Cost of lost customer Cost of inspections Cost of repair
Process ,[object Object],X ’s  Step 1  Step 2  Step 3  Y ’s INPUT PROCESS OUTPUT
CTQ (Critical To Quality) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Defective and Defect ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Question: Critical to Quality(CTQ) related to? The needs of customer  Meeting the specified requirements
Question: Critical to Quality(CTQ) related to? The needs of customer  Meeting the specified requirements
Defect Opportunities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DPO (Defect Per Opportunity) ,[object Object],[object Object],[object Object],[object Object],[object Object]
DPMO  (Defects Per Million Opportunities) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What is Sigma? Have you ever - Shot a Riffle? - Played Darts? What is the point of these sports? What is the point of these sports?
Have you ever…. Jack JIM - Shot a Riffle? - Played Darts? Who is a Better Shooter?
Variability Deviation = Distance between observation and the mean(or average)
Variability Variance  = Average Distance between observations and the mean squared Jack JIM 8 7 10 8 9 VARIANCE
Variability Variance  = Average Distance between observations and the mean squared Jack JIM 7 6 7 7 6 VARIANCE
Variability Most Outcomes occur in the middle Fewer in the “tails” (lower) Fewer in the “tails” (lower) Even very rare outcomes are possible Even very rare outcomes are possible The World tends to be Bell – Shaped …
“ NORMAL” Bell Shaped Curve µ 1  -1  2  -2  3  -3  68% 95% 99.7% Normal distributions are divided up into 3 Standard deviations on each side of the mean Once you are that, you know a lot about what’s going on … That’s what Standard Deviation is Good for
Causes of Variability ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Limits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Acceptable v/s Defective OFF - TARGET Another View Center Process Reduce Speed LSL = Lower Specification Limit USL = Upper Specification Limit LSL USL LSL USL ON - TARGET LSL USL LARGE VARIATION
More about Limits Cpk measures "Process Capability" If process limits and control limits are at the same location, Cpk = 1. Cpk    2 is Exceptional.
A Six sigma process Predictably twice as good as what the Customer wants 1  1  1  1  1  1  6  +6  -6  LSL USL 1 2 4 3 5 8 9 10 7 6 11
Process shift Allowed 1.5SD LSL USL 1 2 4 3 5 8 9 10 7 6 11 12 13 14 15 16 1.5SD SD = 1
Six sigma Measurement
Components of Six Sigma ,[object Object],2. People Power
DMAIC
DMAIC - Simplified ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
DMAIC Approach D efine  the customer, their Critical to Quality (CTQ) issues, and the Core Business Process Involved M easure  the performance of the Core Business Process involved A nalyze  the data collected and process map to determine Root causes and opportunities for improvement I mprove  the target process by designing creative solutions to fix and prevent problems. C ontrol  the improvements to keep the process on the new course D Define M Measure A Analyze I Improve C Control
Question: Why should there be a Control phase when Improvement is already done? Only for companies totally out of control It is a optional phase This is to maintain the gains This phase is as per the choice of Management
Question: Why should there be a Control phase when Improvement is already done? Only for companies totally out of control It is a optional phase This is to maintain the gains This phase is as per the choice of Management
Define ,[object Object],[object Object],[object Object],[object Object],[object Object]
Measure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Analyze ,[object Object],[object Object],[object Object],[object Object],[object Object]
Improve ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Control ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
People power Tell me, I Forget.  Show me, I Remember. Involve me, I Understand.
6 Sigma Training Master Black Belt Mentor, Trainer, and Coach of Black Belts and other in the Organization Black Belts Leader of teams implementing the Six Sigma Methodology on projects. Green Belts Delivers successful focused projects using the Six Sigma Methodology on tools. Team Members/ Yellow Belts Participates on and supports the project teams, typically in the context of his or her existing responsibilities.
Champion ,[object Object],[object Object],[object Object],[object Object],[object Object]
Question: Is Black belt position a full time job in the company? False True
Question: Is Black belt position a full time job in the company? False True
Champion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Master Black Belt ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Black Belt ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Green Belt ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Yellow Belt ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Financial Analyst ,[object Object],[object Object],[object Object],[object Object]
Project Selection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Harvesting the Fruit of Six Sigma ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What Qualifies as a Six Sigma project? ,[object Object],[object Object],[object Object],[object Object]
Thank You

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Introduction To Six Sigma

  • 1. Introduction to Six Sigma Purpose of Six Sigma - To make Customer Happier and Increase Profits
  • 2.
  • 3. Time Line 1985 1987 1992 1995 2002 Allied Signal Johnson & Johnson, Ford, Nissan, Honeywell Dr Mikel J Harry wrote a paper relating early failures to Quality. MOTOROLA General Electric
  • 4. Question : Which company pioneered the concept of six sigma? GE Bombay Dabbawallas ASQ Motorola
  • 5. Question : Which company pioneered the concept of six sigma? GE Bombay Dabbawallas ASQ Motorola
  • 6. Pilot's Six Sigma Performance Width of Landing Strip 1/2 Width of Landing strip If pilot always lands within 1/2 the landing strip width, we say that he has Six Sigma capacity.
  • 7. Pilot's Six Sigma Performance This is a very crude way of telling that when you perform in half the margin allowed to you, you may call it six sigma performance.
  • 8. Question: You have to park your car where side margins are 6 inches on both sides, if your car is perfectly parked in center. What is your performance level when you find out that all the times you are able to park your car within 3 inches from the center and at any time the side margin is not less than 3 inches? Twelve sigma Six Sigma Zero Sigma Three sigma
  • 9. Question: You have to park your car where side margins are 6 inches on both sides, if your car is perfectly parked in center. What is your performance level when you find out that all the times you are able to park your car within 3 inches from the center and at any time the side margin is not less than 3 inches? Twelve sigma Six Sigma Zero Sigma Three sigma
  • 10.
  • 11. Question: How six sigma helps in retaining people? Because two times 3 σ is 6 σ Three sigma does not motivate. Sigma reduces stress level. By empowering them to solve their problems.
  • 12. Question: How six sigma helps in retaining people? Because two times 3 σ is 6 σ Three sigma does not motivate. Sigma reduces stress level. By empowering them to solve their problems.
  • 13.
  • 14. Question: What is the key purpose of six sigma? Do not bother about profits, just make customer happy at any cost. To make customer happy To increase profits (50% marks) To make customer happy and increase profits
  • 15. Question: What is the key purpose of six sigma? Do not bother about profits, just make customer happy at any cost. To make customer happy To increase profits (50% marks) To make customer happy and increase profits
  • 16. What can Six Sigma do ?
  • 17. GE Six Sigma Economics (in millions) Source: 1998 GE Annual Report, Jack Welch Letter to Share Owner and Employees - progress based upon total corporation cost/ benefits attributable to Six Sigma.
  • 18. Overview of Six Sigma CHANGE THE WORLD TRANSFORM THE ORGANIZATION GROWTH COSTS OUT PAIN, URGENCY, SURVIVAL Six Sigma a PHILOSOPHY Six Sigma as a Process Six Sigma as a Statistical Tool.
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  • 23. Question: How many defects per million opportunities make six sigma? 3.4 0.34 3400 34
  • 24. Question: How many defects per million opportunities make six sigma? 3.4 0.34 3400 34 This is with long term shift of 1.5 sigma
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  • 30. Question: In the representation Y=f(X), which of these is X Headache Viral Infection Fever Cough
  • 31. Question: In the representation Y=f(X), which of these is X Headache Viral Infection Fever Cough True, that is the cause of the problem.
  • 33.
  • 34. COPQ v/s Sigma Level
  • 35. Question: Which of the followings is "not" the Cost of poor quality? Cost of raw material Cost of lost customer Cost of inspections Cost of repair
  • 36. Question: Which of the followings is "not" the Cost of poor quality? Cost of raw material Cost of lost customer Cost of inspections Cost of repair
  • 37.
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  • 40. Question: Critical to Quality(CTQ) related to? The needs of customer Meeting the specified requirements
  • 41. Question: Critical to Quality(CTQ) related to? The needs of customer Meeting the specified requirements
  • 42.
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  • 45. What is Sigma? Have you ever - Shot a Riffle? - Played Darts? What is the point of these sports? What is the point of these sports?
  • 46. Have you ever…. Jack JIM - Shot a Riffle? - Played Darts? Who is a Better Shooter?
  • 47. Variability Deviation = Distance between observation and the mean(or average)
  • 48. Variability Variance = Average Distance between observations and the mean squared Jack JIM 8 7 10 8 9 VARIANCE
  • 49. Variability Variance = Average Distance between observations and the mean squared Jack JIM 7 6 7 7 6 VARIANCE
  • 50. Variability Most Outcomes occur in the middle Fewer in the “tails” (lower) Fewer in the “tails” (lower) Even very rare outcomes are possible Even very rare outcomes are possible The World tends to be Bell – Shaped …
  • 51. “ NORMAL” Bell Shaped Curve µ 1  -1  2  -2  3  -3  68% 95% 99.7% Normal distributions are divided up into 3 Standard deviations on each side of the mean Once you are that, you know a lot about what’s going on … That’s what Standard Deviation is Good for
  • 52.
  • 53.
  • 54. Acceptable v/s Defective OFF - TARGET Another View Center Process Reduce Speed LSL = Lower Specification Limit USL = Upper Specification Limit LSL USL LSL USL ON - TARGET LSL USL LARGE VARIATION
  • 55. More about Limits Cpk measures "Process Capability" If process limits and control limits are at the same location, Cpk = 1. Cpk  2 is Exceptional.
  • 56. A Six sigma process Predictably twice as good as what the Customer wants 1  1  1  1  1  1  6  +6  -6  LSL USL 1 2 4 3 5 8 9 10 7 6 11
  • 57. Process shift Allowed 1.5SD LSL USL 1 2 4 3 5 8 9 10 7 6 11 12 13 14 15 16 1.5SD SD = 1
  • 59.
  • 60. DMAIC
  • 61.
  • 62. DMAIC Approach D efine the customer, their Critical to Quality (CTQ) issues, and the Core Business Process Involved M easure the performance of the Core Business Process involved A nalyze the data collected and process map to determine Root causes and opportunities for improvement I mprove the target process by designing creative solutions to fix and prevent problems. C ontrol the improvements to keep the process on the new course D Define M Measure A Analyze I Improve C Control
  • 63. Question: Why should there be a Control phase when Improvement is already done? Only for companies totally out of control It is a optional phase This is to maintain the gains This phase is as per the choice of Management
  • 64. Question: Why should there be a Control phase when Improvement is already done? Only for companies totally out of control It is a optional phase This is to maintain the gains This phase is as per the choice of Management
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  • 70. People power Tell me, I Forget. Show me, I Remember. Involve me, I Understand.
  • 71. 6 Sigma Training Master Black Belt Mentor, Trainer, and Coach of Black Belts and other in the Organization Black Belts Leader of teams implementing the Six Sigma Methodology on projects. Green Belts Delivers successful focused projects using the Six Sigma Methodology on tools. Team Members/ Yellow Belts Participates on and supports the project teams, typically in the context of his or her existing responsibilities.
  • 72.
  • 73. Question: Is Black belt position a full time job in the company? False True
  • 74. Question: Is Black belt position a full time job in the company? False True
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